26-05-2025
China chipmaker Hygon, server maker Sugon agree to merger
SHANGHAI -- Chinese state-backed chipmaker Hygon Information Technology and server producer Dawning Information Industry, better known as Sugon, have agreed to merge as the country races to cut dependence on foreign suppliers.
The companies signed a letter of intent for a "merger by absorption" on Sunday, according to filings to the Shanghai Stock Exchange. Hygon will acquire Sugon by issuing mainland-listed shares, or A-shares, to all of Sugon's A-shareholders in a share swap. It will then issue A-shares to raise supporting funds, though it did not provide details about what those funds will be used for.
